A portfolio manager's picks

A portfolio manager's picks

A portfolio manager Portfolio Manager with Industrial Alliance Securities Inc., John De Goey, gives WP his latest ETF picks.
 
The Vanguard Cap-weighted Emerging Markets ETF (VEE). “This is a market leader in terms of broadly diversified, low-cost access to emerging markets,” says De Goey.
 
“It is almost always a good time to buy emerging markets stocks because they are almost always cheaper than stocks from the rest of the world – and with better long-term growth prospects. They’re also more weakly correlated than most other equity classes. The fact that they pulled back as a result of the Trump victory is just gravy.”
 
The Sphere Emerging Market Dividend ETF (SHZ). “This new product offers a sustainable yield (read: value) tilt with an overlay toward quality.  For people who prefer to use factor tilts, this is likely a better way to go,” says De Goey. 
 
“My simple advice is to buy more emerging market equities. This is an under-owned asset class in a growing part of the world – and it is especially important because it has a rapidly-expanding middle class. There are two ways one might play this theme: cap-weighted and factor based.”
 
The views expressed do not necessarily reflect the opinion of iA Securities. This does not constitute an offer or solicitation to buy or sell any the securities mentioned. The information contained herein may not apply to all types of investors.


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